EUROPEAN BRIEFING AT NOON – Fall in Stock Markets, Energy -3-

Boosted by the highest oil prices in years, shale companies are moving drilling rigs into oil fields that were all but abandoned a few years ago.

Private oil producers are leading an industry comeback in places like the Anadarko Basin in Oklahoma and the DJ Basin in Colorado, where drilling had almost completely stopped by mid-2020 when those areas became unprofitable due to falling oil prices.

   
 
 

Online real estate is not worth the chance

You can make a lot of money on physical real estate right now, but recent results from major online real estate players show that 2022 is not the year to play Monopoly on the stock exchange.

The carnage is not about just one company. Since Compass’ IPO last April, the S&P 500 has risen more than 8%, while online real estate stocks including Redfin, Zillow Group, Opendoor Technologies and Compass have fallen around 58% in average over this period. Their similar losses came despite the fact that each platform has a different business model – Opendoor is a pure iBuyer, Zillow is an iBuyer reverting to an advertising agent business, Redfin is a hybrid broker that also dabbles in iBuying and Compass is an ex-school brokerage disguised as a tech company.

   
 
 

Fed official leaves door open for bigger rate hike in March

Federal Reserve Governor Michelle Bowman said on Monday she had an open mind about whether the central bank should initiate interest rate hikes next month with a bigger hike of a month. half a percentage point.

Ms Bowman’s comments follow remarks late last week by two of the Fed’s top officials who brushed off the prospect of a bigger rate hike at their next meeting on March 15-16. .

   
 
 

Bond fund exodus dampens stock market slump

Bad news in the bond market was a rare boon for equities.

Investors withdrew nearly $160 billion from money market funds and $17.5 billion from bond mutual funds and exchange-traded funds in the first seven weeks of the year, according to Refinitiv Lipper. The exodus is already on track to be the largest in at least seven years.

   
 
 

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This article is a text version of a Wall Street Journal newsletter published earlier today.

 

(END) Dow Jones Newswire

February 22, 2022 06:46 ET (11:46 GMT)

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